California SAFE Act Clears California State Senate Appropriations Committee, Advances to Senate Floor

Landmark legislation targeting staffing fraud and worker exploitation moves one step closer to becoming law

SACRAMENTO, CA, UNITED STATES, May 14, 2026 /EINPresswire.com/ -- The Partnership Organization for Workplace Ethics and Reform (POWER) today applauded the passage of SB 1032, the Staffing Agency Fair Enforcement (SAFE) Act, out of the California Senate Appropriations Committee, clearing the way for consideration by the full California Senate.

Authored by Senator Eloise Gómez Reyes, SB 1032 represents one of the most significant efforts in decades to bring accountability, transparency, and enforcement oversight to California’s temporary staffing industry.

The legislation seeks to close longstanding loopholes that have allowed certain labor contractors and staffing operators to evade workers’ compensation requirements, underreport payroll, avoid payroll taxes, and exploit vulnerable workers while undercutting honest employers.

“This bill is about restoring integrity to California’s workforce system,” said Robert Reid, Executive Director of POWER. “For too long, criminal operators have hidden behind shell companies and weak oversight while workers, taxpayers, and legitimate businesses pay the price. Today’s vote sends a clear message that California is no longer willing to tolerate systemic staffing fraud.”

SB 1032 would establish a statewide registration and compliance framework for staffing agencies, including annual registration requirements, ownership disclosures, verified workers’ compensation coverage, and enhanced enforcement authority for state regulators.

POWER, which has worked alongside labor organizations, employers, prosecutors, and worker advocates to support the legislation, called the committee’s vote a major milestone in a broader effort to dismantle organized fraud networks operating within California’s labor economy.

Jennifer Lentz Snyder, legal advisor to POWER and former head deputy of the Healthcare Fraud Division at the Los Angeles County District Attorney’s Office, said the bill provides critical tools needed to identify and stop sophisticated fraud schemes operating through layered corporate structures. “Bad actors exploit co-employment within the staffing industry and hide among the layers,” Snyder said. “SB 1032 helps law enforcement and regulators identify who is truly responsible and protect workers before they are harmed.”

According to industry estimates, California’s temporary staffing sector employs hundreds of thousands of workers each week. POWER argues that without meaningful registration and verification requirements, fraudulent operators can continue gaining unfair competitive advantages by ignoring labor laws and insurance obligations.

“Honest staffing companies and responsible employers should not have to compete against businesses that cheat workers and evade the law,” Reid added. “The SAFE Act levels the playing field while protecting the very workers who keep California’s economy moving.”

SB 1032 now advances to the California Senate floor for consideration by the full Senate in the coming weeks.

About POWER
The Partnership Organization for Workplace Ethics and Reform (POWER) is focused on combating fraud, exploitation, and criminal activity within California’s workforce and temporary staffing sectors. POWER works with policymakers, regulators, law enforcement, labor organizations, and ethical businesses to promote accountability and protect workers.

Dan Kramer
POWER
+1 803-715-1421
dan@poweraction.org
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